Quote:
Originally Posted by p-slim
you keep forgetting one major thing, when you sell alot of handsets you have more flexibility. apple can sell the iphone for that cheap because they know if they manufacture enough phones they will all get sold so they will profit. the iphone didn't start out that cheap but then as it became a comidity and all the apps blew up and they had backers from every single company, its not a problem to lower phone prices. If windows lowered their prices and started advertising the amount of money they would spend would need to be made back up in phone sells, which probably wouldn't happen. If you have much demand then lowering your prices isn't that hard.
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You're close but not quite accurate. The first iPhone actually was that cheap. And the reason it is cheap is not because Apple expects to sell so many. It's because Apple was making money off iTunes and the app store.
No matter though, the point is the same- the iPhone comes in at around half the price, so that is a major factor on why it sells so well.
It should also be noted that when the first iPhone dropped, Windows Mobile phones were going for over $400 and $500 on contract, and around $650 full retail. SO people were looking at a Windows Mobile phone for $500, with a then $30-$45 data plan, versus an iPhone for $200 and a $20 data plan.